Jargon Buster

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Administration fee
An administration fee often charged for not taking a building and contents insurance policy or some other product offered by the lender in conjunction with a mortgage. These fees are usually less than £50.

Agent
Someone who acts on behalf of another for a fee such as an estate agent. No formal qualification is required to set up as an estate agent in the UK.

Agent recommendation
A product or service provider recommended by estate agents mortgage brokers or building societies with whom they have often negotiated favorable terms and so can offer a special deal as part of the package. It should never be a mandatory requirement that you must use their selected firm or product and if they do insist then it might be worth complaining. Companies often receive financial incentives to recommend one particular firm product or service - whilst this is perfectly legal it means they don't necessarily have your best interests at heart.

Agreement in principle
A first document provided by an mortgage lender which shows any prospective seller that you can actually get a mortgage to cover the purchase price. It also provides a handy reference for some of the key features of your mortgage and what your repayments will be for the introductory offer period if there is one.

Airbrick
A special type of brick which possesses perforations. They are often used for ventilation especially to spaces beneath timber floors and roof spaces.

Approved tradesmen
Your insurance provider may insist that any repair work on your home is carried out by a tradesmen with whom they have negotiated favorable rates and who have been approved as meeting certain standards of workmanship.

Architect
A person who designs or plans buildings and extensions.

Arrangement fee
It is quite common for an arrangement fee to be charged by the lender when applying for a mortgage. Arrangement fees are usually paid on completion of the mortgage and anything from £100 to £350 is fairly common. They are most likely to be charged in conjunction with particularly competitive rates such as discounted fixed and sometimes capped rate mortgage products. It could be the case that the lender is trying to offset some of the long-term cost of offering you such a competitive mortgage rate and you must weigh up which is most important to you especially if you must pay the fee upfront.

Arrears
These are the sum total of late or overdue payments for a mortgage ground rent and maintenance charges or any other regular payment. Some insurance policies will automatically be voided if you fall into arrears.

Asbestos
A dangerous mineral used in the past for insulation purposes. Specialist advice should be sought if asbestos is found.

Arrears fee
This is charged on a monthly basis to cover additional administrative costs where your mortgage account is one or more monthly payments in arrears. Costs £15 - £45. You may well be charged arrears fees in connection with other products.

Attic
The space in between the ceiling and the roof of a property. Is sometimes converted into an extra room.

Back to back
Term used by estate agents to describe the purchase and sale of the same property on the same day. This method if often used by land developers and investors. Common in busy markets when property prices are rising very quickly.

Bank of England Base Rate
The Bank of England set a rate each month known as the 'Base Rate'. Banks and Building Societies use the Base Rate to set the interest rates they pay on deposits, or charge on debts.

Bailiff
An official representative of the courts who may call round to repossess your possessions or house if you cannot keep up on your mortgage repayments and fail to reach an agreement with your lender to amend your repayments.

Bank of England base rate
The prevailing rate of interest set by the Bank of England which all lenders generally follow.

Bankers draft
A method for the payment of funds which is guaranteed by your bank and is therefore seen as more secure than a personal cheque.

Base rate
The prevailing rate of interest set by the Bank of England which all lenders generally follow.

Basic valuation
This is carried out for the purposes of mortgage and is prepared for the lender. A survey will also help you to find out independently whether the price is reasonable. Your mortgage lender will almost certainly insist on a basic valuation to make sure that the property is worth the amount you are paying for it. They want to ensure that you will be able to sell it again and therefore that it is a safe investment. Although it is often referred to as a survey it doesn't go into nearly as much detail as a homebuyer or full survey would do.

Breeze blocks
Hollow concrete or cement building blocks.

Building survey
Also known as a full survey this is the fullest and most comprehensive of the options open to the property buyer. It involves an extensive investigation of the property and a thorough examination of all the major aspects and minor details that are visible. There is some flexibility as you can request the surveyor to concentrate on specific features of the property. It is most suitable for larger older homes with more potential for problems and those more than 75 years old property over three storeys in height buildings of unusual construction (such as thatched timber etc.) or if you plan to extend convert or renovate the property. A full structural survey can cost you anything from £400 to £1000.

Buildings insurance
Buildings insurance is designed to give you financial protection for the basic structure of your home such as the walls roof and foundations. This usually includes any external parts of the property such as your shed garage conservatory or greenhouse

Bungalow
A property which is built all on one level and therefore has no upstairs.

Buy to let mortgage
A mortgage designed for people who buy a property with the intention of letting it out. Largely similar to other mortgages but the maximum loan-to-value (LTV) is usually lower meaning that a larger deposit is required. Other restrictions may also apply such as minimum letting terms and rental income. Lenders will normally incorporate a proportion of the rental income when calculating how much money they are willing to lend you.

Buying costs
Short term outlay required to secure the purchase of a home.

Cash buyer
A person or persons who do not require a mortgage in order to buy a home and who do not have a property to sell. Other cash buyers are those with a mortgage arranged and no property to sell or those who have already sold their property.

Cavity wall
Standard building method for new homes where two layers of brick are separated by a gap of around 50mm usually filled with an insulating material of either: Polystyrene beads Urea formaldehyde form pumped into the cavity or Rock wool (an inert mineral fiber).

Cavity wall-tie
Small metal pin embedded into a cavity wall to increase its strength.

CCJ
Whenever someone fails to pay for something and is subsequently taken to court the magistrate may issue a County Court Judgment against that individual to pay the outstanding debt. This may well affect your ability to raise finances in the future.

Central heating
Heating usually in the form of radiators which is supplied centrally from a boiler to all parts of a home.

Ceramic tiles
Any of a wide range of sturdy floor and wall tiles made from fired clay and set into the floor or wall with grout. Colors and finishes vary and they can be used indoors or out and can be glazed matt or painted.

Credit Check
A check made by the lender to find out whether you have a record of not repaying loans or meeting other financial commitments.

Credit history
The record of how you use the credit you have.

Credit report
A document that contains summaries of how you've repaid previous loans or other credit arrangements, any public record information, addresses, employers etc.

Credit score
A numerical representation of your payment history, current total debt, length of credit history, any recent new debt acquired and types of credit used. Your credit score is used to predict your creditworthiness.

Code of practice
An agreement that certain professions can sign up to in which they agree to act or serve in a certain way and which therefore protects the consumer in areas (such as estate agency) which are not regulated by an institution.

Commission
A percentage of the sale price which the selling party receives. This can be an estate agent in relation to a property a broker selling you a mortgage or other products and even a door to door salesman selling you a nice new set of double glazing.

Concrete
Cement mixed with coarse and fine aggregate including pebbles crushed stone brick sand and water in specific proportions. There are three types of concrete: precast reinforced and prestressed.

Conservatory
A greenhouse type construction built adjoining a house.

Conveyancer
A person other than a solicitor who may conduct the conveyancing.

Conveyancing
The process of transferring property from one party to another, usually managed by a solicitor or a licensed conveyancer.

Covenant
A condition, contained within the Title Deeds or lease, that the buyer must comply with, which is usually applied to all future owners of the property. A restrictive covenant is one that prohibits the owner from doing something.

Damp
A structural problem often caused by poor ventilation in a building.

Deed of covenant
This is a document which confirms that the buyer of a property will comply with the rules and conditions affecting the property which can be found in the Title Deed or Lease.

Detached
Refers to a property which is not attached to another on either side and is therefore free standing

Direct Debit
A Direct Debit is an instruction from a customer to an originator authorizing their bank or building society to make regular collections direct from their account.

Double glazed
"A method of thermally insulating your windows using either a sealed unit comprising two panes of glass fixed and hermetically sealed together; in effect a second ""window"" placed inside the original window."

Estate agents
People who buy and sell properties on your behalf in exchange for a fee. Note that no qualifications are required to do this so always check if they subscribe to a professional body

Fixtures & fittings
All the items in the home such as shelves radiators light bulbs light shades and the like. Fixtures are generally those which are screwed or nailed down glued on or have in some other way been made a part of the fabric of the home. Fittings are those things which can easily be removed.

Flashing
Normally metal or cement used to seal a leak in a roof joint which can sometimes be in place from the date of construction to prevent one from happening in the first place.

Flue
A pipe or smoke duct such as found in a central heating boiler which allows the escape of heat.

Foundations
Laid underground as a structural base to a wall. In older buildings this may be brick or stone but is usually concrete.

Freehold
This means that you own the property outright as opposed to leasehold where you own the rights to occupy a property for a specified period of time.

Freeholder
The person or persons who own a property outright.

French door
A tall window that reaches to the floor and opens like a door.

Fully liable
A surveyor has a duty of care to you as a customer. They are legally bound to provide a certain level of service and are fully liable if they fail to perform their duties. If they fail to identify a fault with a property which then results in you incurring a financial loss then you have the right to either sue them in court or pursue a claim through an arbitration scheme. All surveyors are required to hold professional indemnity insurance that covers them against claims arising from the public due to their professional incompetence.

Gable end
The triangular upper portion of a wall at the end of a pitched roof. It typically has straight sides but there are many variations.

Greenbelt
An area of land surrounding a city protected by the government on which new developments cannot be built.

Ground rent
This applies only to leasehold properties and is a sum paid annually to the freeholder by the leaseholder.

Guarantor
The guarantor is responsible for payments if you default. If a lender is concerned about your ability to repay your loan they may require you to find a guarantor for the loan.

Guide price
The guide price is nothing more than an estimate of the eventual sale price at an auction.

Household insurance
Buildings and contents insurance can often be purchased together protecting both the building structure and your belongings and possessions inside.

Housing act
The 1986 housing act is a wide ranging piece of government legislation that covers many aspects of buying selling renting and letting property.

Housing market
The total amount of properties available at one time; the people who create and meet demand by wishing to buy or sell; the aggregate effect on price caused by changes in demand; and the effect of interest rates.

Inflation
The continual aggregate rate of increase in prices.

Interest rate
The is the percentage of your loan that a lender charges you each year for the privilege of borrowing money. The prevailing level of interest charged by lenders depends largely on the economy and the Bank of England base rate. If the Governor of the Bank of England and the Monetary Policy Committee are worried about the economy overheating and causing inflationary pressure they may raise interest rates. This makes it more expensive to borrow money and therefore the overall demand for borrowing is reduced. Since this is one of the most commonly used instruments for managing the economy we are subject to fairly frequent changes in interest rate.

Internet Service Provider
If the internet is a motor way then your ISP provides the slip road to get on it. They provide you with software and a phone number that routes your entire internet browsing through their servers.

Joint agency
This is where you appoint two agents to sell your property. The commission is often higher as they claim to have only half the chance of earning it.

Joint mortgage
A mortgage obtained by two people. Both are equally liable for the debt on the property.

Joint tenancy
People who have a joint mortgage generally have a joint tenancy. This is therefore the way you would generally own a property with your partner. You both have an equal share in the equity of the property and if you die ownership passes to the other partner. While there is nothing stopping more than two people being joint owners of a home in practice it is very rare.

Joist
Load bearing horizontal structural timber used in flat roof ceiling and floor construction.

Landlord
Either the person who owns a property which you are renting and to whom you pay rent or the freeholder of a property for which there is a leasehold tenure.

Lattice window
A window with diamond-shaped leaded lights or glazing bars arranged like an openwork screen.

Lease
The lease is a document which contains the rights and the covenants (rules) on behalf of both the landlord and the tenant which regulate the use of the property.

Leasehold
When you buy a leasehold property essentially you are buying nothing more than the right to occupy a building for a given length of time. You will have to pay ground rent and maintenance in addition to a one-off payment that buys ownership of the lease until sold or it runs out. The amount of alterations you can make to the property varies accordance with the lease and you may well have other conditions imposed upon you by the landlord.

Let
The process of renting out all or part of your property to someone else.

Liabilities
Basically liabilities are debts that you have and the regular outgoing payments that you make. The reason you must show your bank statements is usually to help the underwriters identify anything in your current expenditure that may impinge upon your ability to repay the loan. They want to know about any other mortgages debts credit cards HP agreements loans overdraft facilities maintenance and court orders. You will normally have to show three to six months worth of bank statements to help demonstrate that the figures you provide them with are accurate.

Load-bearing walls
A wall which cannot be knocked down as it is supporting the structure of the building.

Local authority searches
A local authority search is a check with the local authorities to establish if any new developments are planned in the vicinity of the property you are buying and to check the water drainage systems and other social infrastructure. This can highlight any public works such as a new motorway waterworks or alterations to road systems as well as anything else that is has had permission to take place immediately adjacent to the property. The local search will also tell you whether there are any planning restrictions that may affect your intentions to renovate or extend the property.

Local planning applications
These must be lodged by anyone wishing to build or extend a property to the local planning department of the council.

Loft
The space in between the ceiling an the roof of a property. Is sometimes converted into an extra room.

Major defects
Particular features that may affect either the present value or the ability to resell the property at a later date. It will be up to the surveyor to judge what the urgent and significant matters are that could affect the market value of the property. Identified in homebuyers report/ full survey

Mortar
An adhesive mixture of sand cement lime and water used to join stones or bricks.

Mortgage
The name given to a loan used to buy a property. Usually given at a fairly low rate of interest often cutting your monthly outgoings in comparison to renting while maintaining the same or a higher standard of living. You can take twenty-five years to pay back the money and still end up with a house that you can call your own. It's simple how can you go wrong?

Multiple agency
Several agents market your property and the one that sells it gets the commission.

NAEA
This is an association which looks after estate agents and ensures they sign up to the Estate Agents Code of Practice and schemes such as the Ombudsman Scheme.

National Association of Estate Agents
This is an association which looks after estate agents and ensures they sign up to the Estate Agents Code of Practice and schemes such as the Ombudsman Scheme.

Net
After deduction of tax.

Notice
An official request to vacate a property. A freeholder or landlord may serve you notice on your home for a variety of reasons including failure to pay rent breach of lease and in the case of rented property simply because they want to sell the property.

Offer price
The price the market maker will quote in order to sell to you the shares you wish to buy.

Off-plan
This is when you buy a new home before it has been built based on the plans and artist's impressions.

Open plan
A property where most rooms or living areas are not separated by walls.

Owner-occupier
The buyer has the right to live in the property and to make use of it in any way that is acceptable to the lender.

Patio
Paved recreation area usually at the rear of a home

Penthouse
A flat usually found at the top of a building and is often associated with the exclusive end of the housing market.

Pier
A vertical column of bricks used to strengthen a wall or support a weight.

Plasterboard
Cheap material often used in ceilings and walls of modern buildings. Comprises of a layer of plaster between two layers of a coarse stiff paper.

Plat
A map showing the boundaries of a property or land plot.

Private Sale
Sale of a property without the use of an estate agent.

Pointing
Smooth outer edge of a mortar joint between bricks.

Portfolio
The aggregate of investments held in various differing companies or investment trusts. Can apply to either an individual or an organization.

Quoin
The external angle of a building as formed by the brickwork.

Quote
This is an amount a service provider estimates to be the cost of providing a service based on the available information. These can often vary so it can be worth getting a few quotes to ensure you get the best deal.

Rebuild cost
Required for insurance purposes and is the cost of completely rebuilding your home if it is destroyed.

Recession
When the sale of a property is cancelled or revoked.

Redemption
This is the right of the mortgagor to recover mortgaged property on repayment of the loan and any interest due. This legally means that once you as the borrower have finished repaying the mortgage you took out the property is yours and the lender has no further claim on it. If you pay off the mortgage ahead of schedule you may face a redemption penalty which compensates the lender for loss of interest.

Redevelopment
This can be of an area or building by either a private company or the council and involves improving an area through investment.

Remortgage
When an existing mortgage on a property is paid off in full and another mortgage is taken out on the same property.

Rendering
This is the finishing applied to walls. On internal walls this is usually plaster and cement on external walls. Texture can also be applied such as pebbledash.

Renovate
Usually involves major construction work to make a property habitable that has fallen into a state of disrepair.

Rent
The money paid by a tenant to a landlord for the right to occupy a property.

Repayment
Money paid to a lender to partially or fully clear a debt.

Repossession
When the mortgage lender takes away a borrower's home because he has fallen too far behind on mortgage repayments.

Reserve price
This is the lowest price the seller will accept for a property being sold at auction. Above this the reserve price the vendor is legally obliged to complete the sale.

Retention
This relates to monies withheld by lenders until certain mortgage conditions are met. This will normally relate to repairs or improvements to the property that the lender is insisting on.

RICS
Professional body for surveyors which sets a code of practice for its members.

Ridge
The apex of a pointed roof.

Right of way
The legal term for the right to use someone else's property such as a shared driveway or a footpath.

Riser
The vertical face of a step.

Rising damp
Capillary action causing damp to rise up a wall from the ground below causing rot in timber and decay to plaster.

Rising property market
A period where property prices are rising as the level of demand increases.

Roof cavity
Either a small loft or an inaccessible space that can be insulated to help the building retain heat.

Roof spread
Outward bowing of a wall due to the pressure of the roof.

Royal Institute of Chartered Surveyors
Professional body for surveyors which sets a code of practice for its members.

Semi-detached
A property which is attached to another one on one side only.

Septic tank
A tank in which sewage is decomposed by bacteriological action.

Service charge
This pays for maintenance and insurance of communal areas and is usually only applicable to flats.

Settlement
Also referred to as 'closing' and occurs when all financial dealings and contractual arrangements are completed by both buyer and seller. All debts are paid and money disbursed and the deed is transferred into the new owner's name.

Shakes
Naturally occurring cracks in timber. Do not necessarily affect strength.

Shingles
Rectangular slabs of wood used in place of slate.

Show home
A home constructed on a site of a new development and used to sell properties yet to be built. These can often have different specifications to the other homes to be built so always be aware of what you are buying.

Sitting tenant
Someone who has a legal right of occupation to a property even if the property is sold to someone else and can apply to the local authority to set a fair rent.

Soakaway
Pebble shingles and gravel laid beneath ground to allow the drainage of water.

Sold subject to contract
Very important phrase meaning you have agreed to buy or sell a property but the contracts have not yet been exchanged.

Sole agent
This means an agreement to sell your property through one estate agent only.

Solicitor
Legal professional who is instructed to act on behalf of the buyer in the purchase of a home. They check the legal position of the house carry out a local authority search land registry searches and oversee the smooth exchange of contracts between concerned parties.

Solicitor's fee
Your solicitor will usually charge you a basic fee to cover taking your instructions advising you throughout the course of the sale acting and investigating on your behalf explaining the contract for purchase and completing the matter on your behalf. Though this is rarely charged as a percentage of the property value it can be stepped so that buyers of more expensive properties pay higher fee. If you hunt around you should be able to find a solicitor with a basic charge of as little as £300+ VAT but remember that cheap is not always best.

Spandrel
The space beneath a staircase.

Specialist conveyancer
Licensed conveyancers offer skills in residential property including the purchase of freehold and leasehold property excellent working knowledge of leases and the transfer of interests in domestic property. You may find that larger law firms have a specialist conveyancing arm that deals specifically with business of this nature.

Specialist survey
Aside from the main types of survey you may be advised to get specialist surveys on certain things often as a result of one of the other types of survey. If there are any trees that look like they may start interfering with the foundations of the property or timber that looks like it may have seen better days then you may be advised to get a specialist in to have a separate look at them. This will rarely be included in the cost of your full survey.

Stamp duty
Stamp duty is a government tax for the privilege of buying a house. Currently the tax is 1% of the property's value for those valued at between £60000 and £249000 3% for properties valued between 250k - 500k and 5% over 500k.

Standing mortgage
An interest only mortgage where no arrangements are made at the outset for the repayment of the loan. If a specific investment vehicle has not been arranged to provide funds for this purpose the borrower will have to repay the loan by some other means. If the capital is not repaid the lender can repossess the property and sell it to recover as much of the debt as possible.

Tenant
A person who has a legal right to occupy a property they do not own by signing a contract with the landlord to whom rent is paid.

Tenure
Whether a property is freehold or leasehold.

Term
The time frame for which the lender agrees to provide you with credit.

Terraced
A house attached to another on both sides.

Tie bar
A heavy metal bar placed through a wall suffering structural instability.

Title
The right to ownership of a property.

Title deeds
These are the legal documents which prove the ownership of the property and set out details of anything affecting the property such as rights of way and boundaries.

Title searches
Undertaken by a solicitor or conveyancer to ensure that there are no unusual circumstances governing the ownership or use of a property.

Torching
Mortar applied on the underside of roof tiles or slates to prevent moisture penetration if a roof has not been under laid with felt.

Townhouse
A property usually of two or three storeys that is connected by a common wall to at least one other residence.

Transom
Horizontal bar of wood placed across the top of a window or door.

Tread
The flat face of a step or stair.

Trussed rafters
Prefabricated triangular framework of timbers used to construct roofs in modern homes.

Underpinning
A new foundation is placed beneath the original to strengthen it.

Unmortgagable
A property for which you are unable to find a lender willing to give to a mortgage due to the results or a survey the valuation to price or details of the lease or title deeds.

Utilities
These are companies which provide a service such as gas, electricity, telephone and the like.

Vacant possession
The previous occupants must vacate the property before you move in this includes any tenants.

Valley gutter
Horizontal or sloping gutter at the internal low intersection between two sloping roofs.

Valuation
This is the estimated price that your property is worth.

Valuation report
This is carried out for the purposes of mortgage and is prepared for the lender. A survey will also help you to find out independently whether the price is reasonable. Your mortgage lender will almost certainly insist on a basic valuation to make sure that the property is worth the amount you are paying for it. They want to ensure that you will be able to sell it again and therefore that it is a safe investment. Although it is often referred to as a survey it doesn't go into nearly as much detail as a homebyuyer or full survey would do.

Variable rate mortgages
As you would expect from the name variable mortgage rates go up and down and generally don't stay at the same level for too long. This is because the interest rate and subsequent level of repayment varies with the lender's interest rate. This is usually derived from Bank of England base rate or some other index. One such index is the banks' base rate - an average of the rates of several leading lenders.

Vendor
The person who is selling the property.

Verge
The edge of a roof overhang usually above a gable.

Viewing
Arrangement for potential buyers to see a seller's property and usually through an estate agent in advance. In most cases the owner of the property will show you around their home.

Wainscot
Finishing of wood paneling or boarding applied to the lower part of an internal wall.

Wall plate
Timber placed in the eaves to distribute the weight of the roof timber.

Wet rot
Decay of timber due to damp conditions but not as serious as dry rot.

Woodworm
A large beetle which infests timber and can cause severe structural damage. If suspected seek professional advice.

Yield
The annual dividend relative to the value of the security on which it is received expressed as the percentage the income per share bears relative to the share price